SINGAPORE: Singapore shares closed 1.51 per cent lower on Thursday as optimism over a bailout of the ailing US auto industry faded, dealers said.

The blue-chip Straits Times Index closed down 27.54 points at 1,794.16 on volume of 1.36 billion shares worth S$1.15 billion dollars.

Losers led gainers 228 to 189 with 863 issues unchanged.

The US House of Representatives approved a package worth 14 billion dollars to keep the three biggest American auto makers afloat -- potentially the most far-reaching intervention in US industry in years. The legislation now faces stiff opposition in the Senate.

Despite the local sell off, one dealer said there was "a lot of money out there waiting".

Neptune Orient Lines was a key gainer, up five cents to S$1.31, but Singapore Airlines fell 28 cents to S$11.36 and Singapore Telecommunications eased three cents to S$2.67.

In the banking sector, DBS gained nine cents to S$10.08, UOB dropped 34 cents to S$13.20 and OCBC was steady at S$5.42.

Agribusiness giant Wilmar International fell four cents to S$2.84.

- AFP/yt